Sec. 13312. Certain contributions by governmental entities not treated as contributions to capital
190 words·~1 min read·
/bill/115/hr/1/unknown/section-13312A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 118 is amended— by striking subsections (b), (c), and (d), by redesignating subsection
(e)as subsection (d), and by inserting after subsection
(a)the following new subsections: For purposes of subsection (a), the term contribution to the capital of the taxpayer does not include— any contribution in aid of construction or any other contribution as a customer or potential customer, and any contribution by any governmental entity or civic group (other than a contribution made by a shareholder as such). The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out this section, including regulations or other guidance for determining whether any contribution constitutes a contribution in aid of construction. . Except as provided in paragraph (2), the amendments made by this section shall apply to contributions made after the date of enactment of this Act. The amendments made by this section shall not apply to any contribution, made after the date of enactment of this Act by a governmental entity, which is made pursuant to a master development plan that has been approved prior to such date by a governmental entity.